Marriott International (NASDAQ:MAR) to Repurchase 25,000,000 Outstanding Stock

Key Points

• Marriott International plans to repurchase 25,000,000 outstanding shares, suggesting the board believes the stock is currently undervalued.
• As of the latest trading session, Marriott's stock price decreased by 0.8% to $260.59, continuing its fluctuations with a 12-month high of $307.52.
• The company has declared a quarterly dividend of $0.67 per share, indicating an annual yield of 1.0% with a payout ratio of 30.21%.

Marriott International (NASDAQ:MAR - Get Free Report) declared that its Board of Directors has initiated a share repurchase plan on Thursday, August 7th, RTT News reports. The company plans to buyback 25,000,000 outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Marriott International Stock Down 0.8%

Marriott International stock traded down $2.12 during trading hours on Thursday, hitting $260.59. The stock had a trading volume of 1,695,849 shares, compared to its average volume of 1,531,594. The stock's 50-day moving average price is $268.85 and its 200-day moving average price is $261.73. Marriott International has a 12-month low of $205.40 and a 12-month high of $307.52. The stock has a market capitalization of $70.74 billion, a P/E ratio of 29.38, a price-to-earnings-growth ratio of 2.51 and a beta of 1.44.

Marriott International (NASDAQ:MAR - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $2.65 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.65. The business had revenue of $6.74 billion for the quarter, compared to analysts' expectations of $6.66 billion. Marriott International had a negative return on equity of 93.44% and a net margin of 9.60%. The firm's quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the firm posted $2.50 EPS. On average, research analysts expect that Marriott International will post 10.1 EPS for the current fiscal year.

Marriott International Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Thursday, August 21st will be issued a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a dividend yield of 1.0%. Marriott International's payout ratio is presently 30.21%.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on MAR. The Goldman Sachs Group reiterated a "neutral" rating and issued a $245.00 price objective (down previously from $313.00) on shares of Marriott International in a report on Monday, April 14th. BMO Capital Markets reduced their price objective on shares of Marriott International from $285.00 to $280.00 and set a "market perform" rating on the stock in a research report on Wednesday. Stifel Nicolaus dropped their target price on shares of Marriott International from $295.00 to $240.00 and set a "hold" rating for the company in a research report on Wednesday, April 16th. JPMorgan Chase & Co. started coverage on shares of Marriott International in a research report on Monday, June 23rd. They set a "neutral" rating and a $284.00 price target on the stock. Finally, Robert W. Baird lifted their price objective on Marriott International from $265.00 to $285.00 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Twelve analysts have rated the stock with a hold rating, seven have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $280.89.

Insider Activity

In other news, EVP Benjamin T. Breland sold 1,000 shares of the business's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $270.21, for a total transaction of $270,210.00. Following the completion of the transaction, the executive vice president directly owned 20,724 shares of the company's stock, valued at $5,599,832.04. The trade was a 4.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Anthony Capuano sold 12,000 shares of Marriott International stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $263.90, for a total transaction of $3,166,800.00. Following the completion of the sale, the chief executive officer directly owned 124,067 shares of the company's stock, valued at approximately $32,741,281.30. This trade represents a 8.82% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 15,500 shares of company stock valued at $4,107,710 in the last 90 days. 10.68% of the stock is currently owned by insiders.

Marriott International Company Profile

Marriott International, Inc engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, City Express by Marriott, and St.

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